Amazon revealed on Wednesday, Jan. 18, that it would discontinue AmazonSmile, a charity donation program. This was announced only days after declaring a massive wave of layoffs that would affect 18,000 individuals of its workforce.
The firm is likely scrambling to find and discover new ways to cut expenses.
End of the Initiative
Through its AmazonSmile initiative, Amazon will donate 0.5% of the purchase price of eligible goods to the charitable organization of your choice. It is an independent website with the exact shopping features of Amazon.com.
On the other hand, Amazon would maintain tabs on your spending habits and contribute in your name.
According to TechCrunch, Amazon customers have begun receiving emails from the business explaining the changes. The closing date for AmazonSmile is Feb. 20.
The corporation admitted that its efforts were sometimes ineffective, considering more than 1 million qualifying entities worldwide. "After almost a decade, the program has not grown to create the impact that we had originally hoped."
Over $400 million has been given away by Amazon via the AmazonSmile program since 2013. It seems probable that larger groups received a larger percentage of their contributions, whereas smaller ones received just a few dollars annually.
Business Repercussions
Amazon will provide a one-time gift to charities registered for AmazonSmile that is equal to three months of donations. This is equivalent to a severance payout at for-profit companies, except it benefits charitable organizations.
As the initiative winds down, Amazon will feel the consequences in two ways.
One, the mandatory 0.5% donation on AmazonSmile purchases has been eliminated.
Secondly, efforts were being made to establish a distinct retail presence, cultivate ties with nonprofits, and more. By ending AmazonSmile, the business will be able to release the employees responsible for it.
With this statement coming at the same time as the company's largest-ever wave of layoffs, it seems clear that the demise of the AmazonSmile program is linked to these measures.
Newest Wave of Layoffs
Amazon began notifying those who would be affected by the layoffs.
After Amazon announced intentions to lay off 18,000 workers globally, including almost 1,000 in India, several upset employees allegedly broke down and were left weeping in the office.
Layoffs impacted both new recruits and seasoned employees at Amazon India's offices in Bengaluru, Gurugram, and others.
Most of the company's closures have targeted newly developed subsidiaries.
A few days before that said news, the company also said it would close three of its more than 30 facilities in the UK. It is estimated that 1,200 jobs would be lost due to this decision.
Currently, Amazon is worth $974 billion on the stock market. Their most recent financial report showed they had $2.5 billion in operational profits. Despite the lackluster performance, Amazon is not in danger of going under.
